Kongsberg (OSE: KOG) Shares Drop 6% Despite Q2 Profit Beat as Order Growth Slows 

Kongsberg shares fell sharply on July 13, 2026, after its Q2 report. The stock dropped as much as 8.8% intraday to NOK 272.00. Shares later traded near NOK 273.70, down from a NOK 299.50 close. Revenue climbed 31% to NOK 10.4 billion, beating estimates. EBIT rose 49% to NOK 1.7 billion, above forecasts. However, margins in Kongsberg’s core Defence Systems division fell to 17.7% from 19.6% a year earlier.

Order intake also cooled to NOK 17.1 billion, down from NOK 27 billion in Q1. That slowdown, not the headline numbers, drove today’s selloff.

Kongsberg’s Q2 2026 Results at a Glance

Kongsberg (OSE: KOG) posted record quarterly revenue of NOK 10.4 billion, its first period above that mark. That represented 31% year-over-year growth, beating the roughly $9.95 billion analyst estimate. EBIT climbed 49% to NOK 1.7 billion, lifting the group margin to 16.1% from 14.2%.

Key Q2 2026 headline numbers:

• Revenue reached NOK 10.4 billion, up 31% year-over-year.
• EBIT rose 49% to NOK 1.7 billion, beating consensus estimates.
• Group EBIT margin expanded to 16.1% from 14.2% a year earlier.
• Earnings per share came in ahead of forecasts at $1.65 versus $1.61 expected.

Why the Stock Fell Despite the Beat

Kongsberg’s core Defence Systems division saw its margin shrink to 17.7%. That compares with 19.6% in the same quarter last year. Discovery’s margin also declined, falling to 15.3% from 17.6%. Investors focused on this margin compression rather than the top-line growth.

Order Growth Slows From Q1’s Record Pace

Kongsberg’s order intake reached NOK 17.1 billion in Q2 2026. That marks a sharp slowdown from NOK 27 billion booked in Q1 2026. The book-to-bill ratio fell to 1.6 from 2.9 in the prior quarter. Even so, the order backlog hit a record NOK 157.5 billion.

Order backlog by division:

• Defence Systems backlog stands at NOK 77.3 billion at quarter-end.
• Missiles & Aerostructures backlog reached NOK 68.1 billion.
• Discovery’s order backlog totaled NOK 11.6 billion.
• Total backlog grew from NOK 116.6 billion a year earlier.

KONGSBERG: Q2 2026: KONGSBERG delivers a strong second quarter with increased revenue and solid profitability https://t.co/LN1XtpeEu7

— Pressemeldinger via NTB (@NTB_PRM) July 13, 2026

Fresh Contracts Still Rolled In

Joint Strike Missile orders totaled roughly NOK 10.9 billion in the quarter. That included NOK 3.5 billion from Germany and NOK 4.7 billion from Canada. Kongsberg also secured a $400 million Foreign Military Sale of NASAMS systems to Kuwait. These wins show demand remains intact despite the quarterly order slowdown.

Cash Position Adds to Investor Concerns

Kongsberg’s cash balance fell sharply during the quarter, from NOK 16.4 billion to NOK 4.9 billion. A NOK 5.0 billion dividend payment drove much of the decline. The company also spent NOK 4.5 billion on its Zone 5 acquisition. Working capital rose to NOK 9.1 billion from NOK 7.8 billion a year earlier.

Other stocks and entities in focus:

• Kongsberg Maritime, spun off in April 2026, fell 2.03% the same day.
• Kongsberg’s 49.9% stake in Patria contributed NOK 215 million in profit.
• That is up sharply from NOK 69 million in the same quarter last year.
• Morgan Stanley downgraded Kongsberg to Underweight from Equal Weight on July 7.

Analyst Views and Kongsberg’s Valuation

Wall Street remains split on Kongsberg’s stock after the Q2 report. The average 12-month price target stands at NOK 390.44. That implies more than 42% upside from Monday’s trading levels. Four analysts rate the stock a buy, while two recommend selling.

The stock’s 52-week range spans NOK 228.50 to NOK 425.90. Kongsberg’s market capitalization stood at roughly NOK 241.18 billion. Despite today’s drop, shares remain well above year-ago levels. Long-term targets call for NOK 100 billion in revenue by 2029.

Final Thoughts

Kongsberg’s Q2 2026 report shows a company still growing at a rapid pace. Revenue and EBIT both beat consensus estimates by healthy margins. Still, slower order growth and thinner core margins spooked investors on July 13. The record NOK 157.5 billion backlog offers longer-term revenue visibility. Kongsberg’s next test will be converting that backlog into steadier, higher-margin growth.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.